Cima Labs has been steadily forging ahead since 4/27/01, when it
announced the U.S. launch by AstraZeneca (NYSE:AZN) of its Zomig-
ZMT orally disintegrating migraine headache compound. Cima
specializes in producing products for pharmaceutical companies
that are based upon its OralSolv and Durasolv drug delivery
systems. This enables patients to ingest drugs through fast
dissolving technologies without the use of water and without any
adverse tastes. Turning to CIMA's chart, we see that the stock
has just broken out of a seven-month base pattern. Today's strong
advance was a new closing high for the stock and judging by the
width of CIMA's base, the price target on CIMA becomes $107.
Traders wishing to initiate positions in CIMA could look to do so
on an advance above today's high of $75.35 on volume of at least
300,000 shares. We need volume to come in strong to confirm
CIMA's strength. Speaking of volume, we issue one caveat
regarding CIMA: volume can be weak at times, which adds to the
biotech stock's volatility. Therefore, this is an aggressive play
that might call for half positions. Our initial stops are set at
$67.95 to protect against a turnaround.

Wednesday's Update:

Shares of CIMA largely avoided Wednesday's market downdraft. In
addition, big block trades continue to trade intraday in CIMA
without serving to knock the stock lower. This is a dead
giveaway that institutions are accumulating the stock and that
they are paying up for shares on the ask. We will watch for
support at the 10-dma of $73.93 to continue providing a crutch
for the stock and for the MACD to remain positive going into the
latter part of this week. Traders looking to initiate a position
in CIMA could aim to do so on a break above the previous high of
$77.90 on volume that puts the stock on track to do 300,000
shares for the day. Our stops remain at $67.95 to keep our
downside risk manageable.